Copper price rises nearly 3% as US-Iran hostilities ease and risk appetite returns

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Copper jumps 2.7% to $6.27 today

Highlights

Copper prices gain as easing US-Iran tensions support risk assets and boost industrial metals demand outlook.
Stabilization in the US dollar removes a headwind for international copper buyers, reinforcing support for the metal.
Copper trades with a bullish technical structure and is likely to remain within a $6.1739–$6.3711 range over the next 2–3 days.

Renewed demand rises as geopolitical tensions ease and dollar stabilizes

Copper prices are supported as risk assets recover on easing concerns over recent hostilities between the US and Iran, signaling renewed demand for industrial commodities, according to Bloomberg. This positive shift in market sentiment has boosted copper's appeal, especially as gains in Asian equity markets reflect broader optimism across asset classes. Additionally, the stabilization of the US dollar after its prior advance, cited by Tradingview, removes a headwind for international copper buyers and reinforces underlying demand for the metal.

Mixed momentum signals as price surges above key moving averages

On the technical front, HG is holding above its MA-20 at $6.1883 and MA-50 at $6.1946 on the 4-hour chart, while also remaining well above the daily MA-200 set at $5.8921. The Ichimoku Kijun currently sits at $6.17, serving as immediate support. Among momentum indicators, the Moving Average Convergence Divergence (MACD) displays strong selling pressure, while the Average Directional Index (ADX) is neutral. The Relative Strength Index (RSI) is at 57.5, which is a buy signal, with both the Commodity Channel Index (CCI) and Bull/Bear Power also indicating buyer dominance. However, the Stochastic RSI is overbought, and the Awesome Oscillator remains neutral, resulting in a notable divergence across key technical signals.

Potential for upside consolidation as resistance and support define range

Looking ahead over the next two to three trading days, copper is forecast to move within a range of $6.1739 to $6.3711. There is a 68% probability of an upward move, while the chance of a downward correction is 32%. The baseline scenario suggests the price is likely to consolidate within this band. In a bullish scenario, a clear break above resistance could lead to a further extension of gains. Conversely, if support at the lower bound fails, a pullback or corrective phase may unfold.

Viktoras Karapetjanc, expert at Traders Union, sees copper as well supported by stronger global risk appetite and steadier macro conditions. He notes that recovering sentiment after US-Iran tensions, along with resilient demand for industrial metals, has brought renewed inflows to the market. Technical signals are mixed, but the overall bias remains constructive as long as key support levels hold. Karapetjanc believes upside scenarios have a clear edge in the coming days. "With sentiment turning positive and fundamentals reinforcing the trend, I expect copper to remain firm and probe higher within its current range."

Earlier, analysts noted that improved supply outlook and stronger risk appetite had underpinned a bullish shift in copper’s medium-term prospects. The current positive momentum, reinforced by resilient global risk assets and mixed technical signals, highlights the importance of monitoring for a decisive breakout above resistance, which could set the stage for further upside in coming sessions.

Source of Data: HG Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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